Head to Head Contrast: Magic Software Enterprises (NASDAQ:MGIC) and Triple P (OTCMKTS:TPPPF)

Magic Software Enterprises (NASDAQ:MGIC) and Triple P (OTCMKTS:TPPPF) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Earnings and Valuation

This table compares Magic Software Enterprises and Triple P”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magic Software Enterprises	$552.52 million	N/A	$36.88 million	$0.81	33.70
Triple P	N/A	N/A	N/A	N/A	N/A

Magic Software Enterprises has higher revenue and earnings than Triple P.

Profitability

This table compares Magic Software Enterprises and Triple P’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magic Software Enterprises	6.61%	16.28%	8.96%
Triple P	N/A	N/A	N/A

Insider & Institutional Ownership

24.7% of Magic Software Enterprises shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by company insiders. Comparatively, 39.0% of Triple P shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Magic Software Enterprises and Triple P, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Software Enterprises	0	3	1	0	2.25
Triple P	0	0	0	0	0.00

Magic Software Enterprises currently has a consensus target price of $18.00, indicating a potential downside of 34.05%. Given Triple P’s higher probable upside, analysts plainly believe Triple P is more favorable than Magic Software Enterprises.

Risk and Volatility

Magic Software Enterprises has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Triple P has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Summary

Magic Software Enterprises beats Triple P on 8 of the 10 factors compared between the two stocks.

About Magic Software Enterprises

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. The company’s IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental outsourcing services. It also offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining business applications; Magic xpi for application integration; Magic xpi cloud native; FactoryEye for virtualization of production data; Magic Data Management and Analytics Platform for data management; and Magic SmartUX for cross-platform mobile business applications. The company also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Cargo, a packaged software solution for managing air cargo ground handling; HR Pulse, a single-tenant software as a service tool; MBS Solution, a system for managing TV broadcast management; Nativ, a system for management of rehabilitation centers; and Mobisale, a system for sales and distribution field activities for consumer goods manufacturers and wholesalers. In addition, It provides software maintenance, support, training, and consulting services. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. The company was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

About Triple P

Triple P. N.V. provides information and communication technology (ICT) infrastructure solutions. Its services include ICT security, cloud, managed services, managed IP telephony, professional services, business continuity, unified communications, and cloud migration. The company serves care, education, government, and commercial services sectors. Triple P. N.V. was founded in 1989 and is headquartered in Nieuwegein, the Netherlands.